I 

115TH CONGRESS 

2D SESSION H. R. 6015 

To amend the Internal Revenue Code of 1986 to increase the tax on certain 

global intangible income. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 6, 2018 

Mr. DEFAZIO (for himself, Mr. DOGGETT, Ms. DELAURO, Ms. NORTON, and 

Ms. SCHAKOWSKY) introduced the following bill; which was referred to 

the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the tax on certain global intangible income. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Per-Country Minimum 

5 Act’’. 

6 SEC. 2. INCREASE IN TAX ON GLOBAL INTANGIBLE IN7 COME. 

8 (a) IN GENERAL.— 

9 (1) REDUCTION IN DEDUCTION FOR TAXABLE

10 YEARS BEFORE 2026.—Section 250(a)(1)(B) of the 


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1 Internal Revenue Code of 1986 is amended by strik2 ing ‘‘50 percent’’ and inserting ‘‘37.5 percent’’. 

3 (2) REDUCTION IN DEDUCTION FOR TAXABLE

4 YEARS AFTER 2025.—Section 250(a)(3)(B) of such 

5 Code is amended to read as follows: 

6 ‘‘(B) ‘21.875 percent’ for ‘37.5 percent’ in 

7 subparagraph (B).’’. 

8 (b) REPEAL OF TAX-FREE DEEMED RETURN ON IN9 VESTMENTS.— 

10 (1) IN GENERAL.—Section 951A(a) of such 

11 Code is amended by striking ‘‘global intangible low12 taxed income’’ and inserting ‘‘net CFC tested in13 come’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) Section 951A of such Code is amended 

16 by striking subsections (b) and (d). 

17 (B) Section 951A(e)(1) of such Code is 

18 amended by striking ‘‘subsections (b), 

19 (c)(1)(A), and’’ and inserting ‘‘subsections 

20 (c)(1)(A) and’’. 

21 (C) Section 951A(f) of such Code is 

22 amended to read as follows: 

23 ‘‘(f) TREATMENT AS SUBPART F INCOME FOR CER24 TAIN PURPOSES.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), any net CFC tested income included in 

3 gross income under subsection (a) shall be treated in 

4 the same manner as an amount included under sec5 tion 951(a)(1)(A) for purposes of applying sections 

6 168(h)(2)(B), 535(b)(10), 851(b), 904(h)(1), 959, 

7 961, 962, 993(a)(1)(E), 996(f)(1), 1248(b)(1), 

8 1248(d)(1), 6501(e)(1)(C), 6654(d)(2)(D), and 

9 6655(e)(4). 

10 ‘‘(2) EXCEPTION.—The Secretary shall provide 

11 rules for the application of paragraph (1) to other 

12 provisions of this title in any case in which the de13 termination of subpart F income is required to be 

14 made at the level of the controlled foreign corpora15 tion.’’. 

16 (D) Section 960(d)(2)(A) of such Code is 

17 amended by striking ‘‘global intangible low18 taxed income (as defined in section 951A(b))’’ 

19 and inserting ‘‘net CFC tested income (as de20 fined in section 951A(c))’’. 

21 (c) DETERMINATION OF NET CFC TESTED INCOME

22 ON COUNTRY-BY-COUNTRY BASIS.—Section 951A of such 

23 Code is amended by adding at the end the following: 

24 ‘‘(g) DETERMINATION MADE ON COUNTRY-BY-COUN25 TRY BASIS.— 


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1 ‘‘(1) IN GENERAL.—This section shall be ap2 plied with respect to a United States shareholder of 

3 the controlled foreign corporation separately with re4 spect to each foreign country in which the controlled 

5 foreign corporation conducts any trade or business. 

6 ‘‘(2) SPECIAL RULES.— 

7 ‘‘(A) IN GENERAL.—For purposes of mak8 ing country-by-country determinations under 

9 this section and sections 904 and 960 with re10 spect to net CFC tested income for a taxable 

11 year pursuant to paragraph (1)— 

12 ‘‘(i) taxes paid or accrued to a foreign 

13 country by the controlled foreign corpora14 tion shall be assigned to that country, and 

15 ‘‘(ii) earnings to which such taxes re16 late shall be treated as income assigned to 

17 the country to which those tax payments 

18 are made. 

19 ‘‘(B) EARNINGS ASSIGNED TO TWO OR

20 MORE COUNTRIES.—If the same earnings are 

21 assigned to two or more countries under sub22 paragraph (A), for purposes of paragraph (1) 

23 such earnings and the taxes related thereto 

24 shall be treated as assigned to the country with 

25 the highest statutory corporate tax rate. 


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1 ‘‘(3) EARNINGS NOT SUBJECT TO TAX.—If 

2 earnings are not subject to tax by any country, then 

3 with respect to those earnings paragraph (1) shall 

4 not apply. 

5 ‘‘(4) REGULATIONS.—The Secretary shall pre6 scribe such regulations as may be necessary or ap7 propriate to carry out this subsection, including the 

8 time period in which foreign earnings and the associ9 ated foreign taxes are assigned to a country.’’. 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply with respect to taxable years of 

12 controlled foreign corporations beginning after December 

13 31, 2018, and to taxable years of United States share14 holders in which or with which such taxable years of for15 eign corporations end. 

Æ 


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